CASE STUDY ON

TATA SALT
The ‘Meine desh ka namak khaya hai’ TATA advertisement campaign in 2002 offered viewers an instant
connection. In India, salt and loyalty have been associated from time immemorial. ‘Namak halal’
and ‘Namak Haram’ are commonly used terms for honest and dishonest people respectively.
According to cultural connotations, after consuming salt at a person’s house the one who has
consumed the salt should not cheat his/her host. The campaign connected with the consumer at an
emotional level.
TATA Chemicals Ltd (TCL) started manufacturing salt in 1939 after establishing a solar salt works at
Mithapur, Gujarat. It pioneered the concept of iodized and vacuum-evaporated salt in India in the
early 1980s and created a need that was not felt by consumers before. Interestingly, the opportunity
came accidentally, when in 1983, the company needed fresh water for its boilers that produced soda
ash at its Mithapur plant in Gujarat. As fresh water was scarce in the area, the company began
processing sea water. Salt of high quality was the by-product. Estimated to be worth Rs.10 billion,
TATA has a 21% share in the packaged iodized salt industry in India. According to A.C. Neilson in
Brand Track 2002-03, 90% of the people surveyed across the country had tried TATA salt at least
once. The salt market is pegged at five million tones out of which 1.5 million tones are of the
branded variety. TATA salt leads the market with a 40% share. According to analysts, TATA was
able to get the leadership position in the category as it had the first mover advantage. Some
competing brands include Annapurna from HLL, Dandi from Kumwar Ajay industries, Shudh from
the Mirma Group, Captain Cook from DCW Home foods, Ashiwaad from the ITC stable, besides
some international brand like Cargil and Congra. From „vacuum-evaporated‟ to „iodized‟ from
„free flow‟ to „danedar‟, one does not see much brand differential among competitive brands, hence
the need for a strong and memorable advertising plank and better packaging. One finds vigorous
advertising by major players in the mass media. Looking at the overseas potential, TATA, according
to industry buzz, is exploring the Middle East market and those of neighbouring countries like Nepal
and Bangladesh.
Tetley‟s overseas distribution network could come in handy for marketing the salt in
these countries. In order to expand the user base, TATA salt that is priced at Rs 8 per
kilogram, against un-branded salts at Rs 3-4 per kg. The company has launched its
economy brand „Samundar‟ at Rs 5 per kg. Purity, trust, and value have been the
planks of its communication strategy. The earlier catch-line, „Namak ho TATA ka,
TATA namak‟, when more competitors came into the market, and the need for an
emotional bond was felt. Besides an aggressive approach to branding, the company
improved packaging, sales, and supply chain management. According to company
sources, consumer research by TATA Chemicals in June 2002 revealed that people
had a sense of insecurity and a disgust for corruption, which they thought were
eroding Indian democracy. The insights that the research provided helped in tapping
patriotic and nationalist favor. TATA took the opportunity to be associated with the
universal theme of „remaining ture to one‟s salt and to one‟s country‟. This was the
philosophy behind the „Meine desh ka namak khaya hai‟ tagline. The new
packaging, with the visual of delectable cuisine, backed this. „Vacuum evaporated‟
and „iodized‟ were clearly written on the pack a plank that other competitors also
used. The advertisement with the visual of a banana leaf and a pinch of salt in a
corner ( a traditional serving in south India) with the headline (figure 1): „To Indian
housewives, our salt always comes first‟ and the catch line „Meine desh ka namak
khaya hai‟ was considered by analysts as amongst the greatest advertisements when
it appeared. In order to connect with communities, TATA salt has used public
relations to sustain the brand on a ling term basis. Since the launch of the „Desh ka
namak‟ campaign in 2002, during some specified months, a small percentage of
money that accrues from the sale of TATA salt is set aside for economically
disadvantaged children. In the two years since the launch, 25,000 children have been
provided with one year of education.
Figure 1
• TATA was able to get the leadership position in the
category as it had the first mover advantage.
• Some competing brands include Annapurna from HLL,
Dandi from Kumwar Ajay industries, Shudh from the
Mirma Group, Captain Cook from DCW Home foods,
Ashiwaad from the ITC stable, besides some international
brand like Cargil and Congra.
• From ‘vacuum-evaporated’ to ‘iodized’ from ‘free flow’ to
‘danedar’, one does not see much brand differential among
competitive brands, hence the need for a strong and
memorable advertising plank and better packaging.
• Vigorous advertising by major players in the mass media.
• Looking at this TATA, according to industry buzz, is
exploring the Middle East market and those of neighbouring
countries like Nepal and Bangladesh.
Case study in brief
• Tata Chemicals’ salt story began in 1983, when it needed fresh water for
the boilers that produced soda ash at its Mithapur plant. Fresh water was
scarce, so the company set up a process to generate it by using seawater, a
freely available resource.
• Salt, of high quality and purity, was a by-product. These factors led to Tata
Chemicals taking up salt production.
• Tata Chemicals is a market leader in iodized salt segment. Today the
company manufactures 3,50,000 tonne of vacuum-evaporated salt annually.
• The company manufactures four varieties of salt:
Iodized salt, crystalline salt ,vacuum salt and Pure salt.
• The company produces around 28 million 1-kg packs of this leading brand
every month.
• The preference for the product in all segments of the market: housewives,
restaurateurs, industry and even the Indian government.
• 2002-03, 90% of the people surveyed across the country had tried TATA
salt at least once.
• TATA salt leads the market with a 40% share
• . In order to expand the user base, TATA salt that is priced at Rs
8/kg, against un-branded salts at Rs 3-4/kg.
• The company has launched its economy brand ‘Samundar’ at Rs
5/kg. Purity, trust, and value have been the planks of its
communication strategy.
• The earlier catch-line, ‘Namak ho TATA ka, TATA namak’, when
more competitors came into the market, and the need for an
emotional bond was felt.
• Besides an aggressive approach to branding, the company improved
packaging, sales, and supply chain management.
• According to company sources, consumer research by TATA
Chemicals in June 2002 revealed that people had a sense of
insecurity and a disgust for corruption, which they thought were
eroding Indian democracy.
• The insights that the research provided helped in tapping
nationalist favor. TATA took the opportunity to be associated with
the universal theme of ‘remaining ture to one’s salt and to one’s
country’.
• This was the philosophy behind the ‘Meine desh ka namak
khaya hai’ tagline.
• Tata Salt, the Indian branded salt market launched a new
campaign titled 'Maine Desh Ka Namak Khaya Hai' that
featured the story of world boxing champion, Olympic
winner, MC Mary Kom.
• For over a decade,Tata Salt has lived up to its image of being
the 'Desh ka Namak' faith in the people of the country
through every day acts of honesty, loyalty and integrity which
are the core values of the brand.
QUESTIONS:
1. Salt is a generic product and is basic to human existence.
Why then in your view, is there so much competition and
rigorous marketing in this category?
Different Salt Manufacturers are(Competitors):
 Annapurna
 Surya Salt
 Captain Cook
 i-shakti
 Nirma Shudh
 Aashirvaad